UPDATE 1-Golf-Karlsson breaks course record to lead Italian Open

Reuters: [2008-05-09 19:21:00]

By Norman Dabell

MILAN, May 9 (Reuters) - Swede Robert Karlsson broke the Tolcinasco course record with an 11-under 61 to surge into the lead at the halfway stage of the Italian Open on Friday.

Confusion over his qualification for Sawgrass meant Karlsson had decided to stick to his schedule of playing in Italy rather than travel to the United States for the Players' Championship.

A scintillating two-eagle, eight-birdie return showed the world number 48 might reap richer dividends in Europe this week.

His card, also containing 12 threes, hauled him through the field to sit two strokes in front of South African Hennie Otto and Britain's Mark Foster, who both shot 66.

Argentine Estanislao Goya (67), the current lower-rated European Challenge Tour money-list leader, and Dane Anders Hansen (65) are two strokes further back.

The overnight joint leader Marco Ruiz of Paraguay (70) is in a large group at 10-under.

Karlsson admitted the so far unattained 59 on the European Tour had "crossed my mind" but the 2006 Ryder Cup player was still delighted to equal his career-best return which gives him a chance of an eighth title.

"I was never really sure I would make Sawgrass and I thought if I could play well here it would be for the best," Karlsson told reporters.

"I'm in Ireland next week, so it's really good for travelling and maybe it's worked out for the best."

NO TARGETS

Karlsson, who had to wait seven years for his chance to play against the U.S. after narrowly missing out on the 1999 Ryder Cup team, has every chance of moving up Europe's (combined) Cup table from his current eighth position.

Even though he feels he is playing the best golf of his life, though, the Monte Carlo-based Swede is determined not to set either Nick Faldo's Valhalla team as a goal or winning a first major.

"I've found out you definitely can't chase results," said Karlsson. "So I'm focusing on improving all the time.

"The Ryder Cup or a major will then take care of itself."

It is the second successive week that the tour's third-best under par opening two-round score has been achieved, following Ignacio Garrido's 15-under aggregate in last week's Spanish Open.

Britain's Oliver Wilson is on nine-under after using a wedge to putt for nine holes, during which he picked up three birdies. The Englishman with six second places to his name, including two this year, bent his putter by rapping it on his bag in a mild show of petulance.

Twice major champion John Daly (73) qualified for the final two rounds, right on the cut-off of four-under.

(Editing by Rex Gowar) ((rex.gowar@thomsonreuters.com; +442075423321; Reuters Messaging: rex.gowar.reuters.com@reuters.net. For the latest Reuters Premier League and international football news see: http://football.uk.reuters.com))

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Keywords: GOLF EUROPEAN/

Financial worries drive Europe shares to weekly loss

Reuters: [2008-05-09 18:37:00]

By Amanda Cooper

LONDON, May 9 (Reuters) - European stocks fell on Friday, racking up their first weekly loss in a month, after another round of downbeat financial earnings and a record high oil price weighed on the broader market.

The FTSEurofirst 300 index <.FTEU3> fell 1.3 percent to 1,342.68 points, having fallen earlier by as much as 1.86 percent. This was the largest one-day fall in a month and snapped a three-week rally in the index.

Banks were the largest drag on the market, even though much of the negative news for financials was confined to the insurance sector.

U.S. insurer AIG <AIG.N> reported a record-breaking $7.8 billion quarterly loss on Thursday and financials were hurt by the prospect of big asset sales by Citigroup <C.N>.

"We've had a couple of announcements, be it AIG after the bell yesterday or Allianz today or Swiss Re the day before, showing the aftermath of the financial crisis is still to show up in bank accounts, that's raised the question of how much capital needs to re raised to restore their Tier One capital ratios," said Heino Ruland, a strategist with FrankfurtFinanz.

Allianz <ALVG.DE>, Europe's largest insurer, said its Dresdner Bank until had posted a quarterly operating loss of 453 million euros, about the same level as the fourth quarter. Allianz said it could not give a meaningful forecast for earnings at the bank because of financial market uncertainty.

This comes at the end of a dismal week for Europe's insurers. Axa <AXAF.PA> and Aegon <AEGN.AS> both disappointed investors with their results, while Munich Re <MUVG.DE>, Old Mutual, Royal & Sun Alliance <RSA.L> warned market conditions would be tough.

The DJ Stoxx index of European insurers <.SXIP> fell 3.5 percent this week and is down nearly 10 percent this year.

AXA <AXAF.PA> was down 1.9 percent, Swiss Re <RUKN.VX> lost 2.5 percent, and Royal & Sun Alliance fell 3.1 percent. Allianz shares were down 1 percent, having fallen earlier by as much as 2 percent.

But miner Kazakhmys <KAZ.L> was the worst loser in Europe, falling 6.7 percent after rejecting a takeover offer from rival Eurasian Natural Resources Corp <ENRC.L>.

CITI WORRIES

Citigroup, the largest U.S. bank, said it aimed to sell $400 billion of assets -- nearly 20 percent of its total -- over the next two to three years to become more efficient and profitable.

"Over the past weeks, investors got the feeling that the credit crisis was easing, but a piece of news like that is sort of a wake-up call that reminds us that the storm is far from over," said Marie-Pierre Peillon, head of equity and credit research at Groupama Asset Management in Paris.

"This Citigroup move might just be the beginning."

The DJ Stoxx index of European banks <.SX7P> fell 1.7 percent, bringing this week's decline to 3.7 percent.

Societe Generale <SOGN.PA>, BNP Paribas <BNPP.PA> and Barclays <BARC.L> lost between 2 and 2.5 percent.

The FTSEurofirst 300 has risen by about 13 percent since hitting the low for the year in mid-March. But the index is down by more than 1 percent this week.

"The rally is running out of steam; it's more to do with the fact that people are realising the economy in Europe is turning down," FrankfurtFinanz's Ruland said.

Worries about the health of the financial sector combined with a fresh record high in oil prices near $125 a barrel <CLc1> to hit risk appetite, leading to broad pressure on equities.

In a sign the credit crunch is sending waves well beyond the the financial sector, Spain's Grupo Ferrovial lost 4 percent <FER.MC> after its British airport operator unit BAA said it may not be in a position to start debt renegotiations in the coming weeks as planned because of market conditions.

Ferrovial shares were down by more than 5 percent.

"We are not out of the woods yet," Lena Komileva, head of G7 market economics at Tullett Prebon said in a research note.

"Risk remains a multi-dimensional story and ... the economic costs are mounting as the crunch moves to the real economy."

Sanofi-Aventis <SASY.PA> dropped nearly 6 percent after generic drug maker Schweizerhall said it was close to winning approval for a generic version of the French firm's blockbuster blood-thinning drug Plavix in Germany. A spokesman for Sanofi said Plavix was protected in Europe by its patent until 2013.

European car makers were also under pressure after Toyota Motor Corp <7203.T>, the world's biggest automaker, forecast its first decline in annual net profit in seven years.

Peugeot <PEUP.PA> was down 1.1 percent, BMW <BMWG.DE> lost 4.2 percent and Daimler <DAIGn.DE> fell nearly 1 percent.

On the scant gainers' list, German utility E.ON <EONG.DE> briefly rose as much as 3 percent on speculation of a possible bid from France's EDF <EDF.PA>, traders said, before easing to show a gain of 1 percent. E.ON declined to comment.

In late trade, sources familiar with the matter said EDF had submitted an offer for British Energy <BGY.L> and would bid without a partner.

Around Europe, Germany's DAX index <.GDAXI> and Britain's FTSE 100 index <.FTSE> were both down 1 percent, while France's CAC 40 <.FCHI> lost 1.9 percent. (Additional reporting by Toni Vorobyova in London and Blaise Robinson in Paris; Editing by Quentin Bryar)

((amanda.cooper@thomsonreuters.com; Reuters messaging amanda.cooper.reuters.com@reuters.net; +44 207 542 3424))

Keywords: MARKETS EUROPE STOCKS/

 
 ============================================================= 
    For rolling updates on what is moving European shares  
    please click on [STXNEWS/EU] 
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 For pan-Europeanmarket data and news, click on codes in  
 brackets: 
 European Equities speed guide...................<EUR/EQUITY> 
 FTSEurofirst 300 index..............................<.FTEU3> 
 DJ STOXX index......................................<.STOXX> 
 Top 10 STOXX sectors...........................<.PGL.STOXXS> 
 Top 10 EUROSTOXX sectors......................<.PGL.STOXXES> 
 Top 10 Eurofirst 300 sectors...................<.PGL.FTEU3S> 
 Top 25 European pct gainers.......................<.PG.PEUR> 
 Top 25 European pct losers........................<.PL.PEUR> 
    Main stock markets: 
 Dow Jones...............<.DJI>  Wall Street report .....[.N] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices......................................<0#.INDEX> 
 Reuters survey of world bourse outlook..........<EQUITYPOLL1> 
 Western European IPO diary...........................[WEU/IPO] 
 European Asset Allocation.........................[EUR/ASSET] 
    Reuters News at a Glance: Equities...............[TOP/EQE] 
    Main currency report:...............................[FRX/] 
  Keywords: MARKETS EUROPE STOCKS/ =2 
    

Financials, oil weigh on European shares

Reuters: [2008-05-09 17:33:00]

LONDON, May 9 (Reuters) - European shares fell on Friday, notching up their first weekly loss in a month as renewed concern over the outlook for the financial sector and a record high oil price dragged on the broader market.

The FTSEurofirst 300 index <.FTEU3> of top European shares fell 1.3 percent to close at an unofficial 1,343.43 points. Declining shares outnumbered advancers by about five to one.

"You get the feeling from the corporate sector that the international credit crisis is taking its toll and this will change the entire landscape of earnings forecasts, which for the time being are still quite upbeat," said Heino Ruland, a strategist for FrankfurtFinanz.

"The rally is running out of steam. It's more to do with the fact that people are realising the economy in Europe is turning down."

Adding to concern about the economic outlook was crude oil <CLc1> hovering just shy of record highs above $126 a barrel.

Banks were the largest collective drag on the market, although French drugmaker Sanofi-Aventis <SASY.PA> was the biggest individual negative weight after the threat of generic competition for its blockbuster blood-thinner Plavix surfaced in Europe. Sanofi shares were down nearly 6 percent.

(Reporting by Amanda Cooper) ((amanda.cooper@reuters.com; Reuters messaging amanda.cooper.reuters.com@reuters.net; +44 207 542 3424))

Keywords: MARKETS EUROPE STOCKS CLOSE

Swedish far-right party hits highest poll rating

Reuters: [2008-05-09 15:22:00]

STOCKHOLM, May 9 (Reuters) - Support for the far-right group Sweden Democrats has risen to more than 4 percent among Swedish voters, according to an opinion poll on Friday, enough to win seats in parliament if an election were held now.

The poll, by Expressen newspaper and the polling firm Demoskop, said the party had 4.2 percent support, compared with between 2.3 and 3.2 percent during the past year.

The anti-immigrant Sweden Democrats, founded in 1988, describe themselves as the country's leading nationalist party but say they oppose totalitarianism and racism.

According to the party's website, the Universal Declaration on Human Rights is a fundamental plank of its politics.

Party leaflets call for curbs on immigration and for foreigners living in Sweden who are not in need of protection to be sent back to their own countries.

Swedish electoral rules state that any party that wins more than 4 percent of the popular vote has the right to be represented in parliament.

The country has traditionally been governed by the Social Democrats, but a coalition led by the Moderate Party swept to power in 2006.

The next election in Sweden is due in 2010. (Editing by Andrew Dobbie)

((Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@reuters.com))

Keywords: SWEDEN RIGHTWING/

UPDATE 1-EU set to drop dumping measures vs Norway salmon

Reuters: [2008-05-09 14:56:00]

(Adds Norwegian fish industry comments, shares)

By William Schomberg

BRUSSELS, May 9 (Reuters) - The European Union is set to drop its anti-dumping measures against imports of farmed salmon from Norway, ending a long-running trade dispute between the bloc and Oslo, people familiar with the decision said on Friday.

The EU imposed minimum import prices on Norwegian salmon in 2006 after nearly a decade of wrangling, saying the fish was being sold at unfairly low prices and damaging fish farms in Scotland and Ireland.

Norway denied its exporters were breaking trade rules and took the case to the World Trade Organisation.

After an internal review of the measures, trade officials at the EU's executive European Commission have recommended to EU member states that the minimum prices be eliminated, the people familiar with the situation said.

"It looks like the case is going to be closed," one said.

Norwegian fish exporters said removing the trade barrier would be an important step and showed they had done no wrong.

"We are 100 percent certain that there was no dumping in 2006," said Trond Davidsen, a director of the Norwegian Seafood Export Council.

"Nor is there any danger of new dumping because there is strong demand for seafood and very good times ahead (for the business)," he said. "It seems like the Commission has taken this into account."

The dispute has been watched closely by investors in Norway's aquaculture companies, which include the world's biggest fish farmer, Marine Harvest <MHG.OL>.

Shares in Marine Harvest and other Norwegian fish companies rose against a weak Oslo bourse, though Cermaq <CEQ.OL> fell after the company posted losses for the first quarter.

The Commission's recommendation will be discussed by trade experts from EU governments this month and is almost certain to be approved, the people familiar with the case said.

The WTO found last year that the EU was at fault on several points in its handling of the salmon dumping case, although Brussels as well as Oslo claimed victory from the ruling.

The 27-nation EU is Norway's biggest export market for seafood, the country's third-biggest export earner.

A spokesman for the European Commission declined to comment when asked about the recommendation to end the measures.

The price of Norwegian salmon has been above the EU's minimum import price of 2.80 euros ($4.29) per kilogram.

Scottish and Irish farmers fear it could fall if Norway ramps up production.

The environment minister of Scotland's regional government, Michael Russell, said in April that if Brussels axed the measures, it ought to make sure they could be reimposed quickly if needed.

Irish fish farmers have said they will try to mobilise voters along the country's western coast to vote against a new EU treaty in a referendum in June, if the measures are repealed. (Additional reporting by Camilla Bergsli in Oslo) (Editing by Dale Hudson)

((william.schomberg@reuters.com; +32 2 287 6832; Reuters Messaging: william.schomberg.reuters.com@reuters.net)) ($1=.6523 euro)

Keywords: EU NORWAY/SALMON